If an American flag becomes worn, torn or faded, it should be disposed of properly. You can take it to a VFW post, an American Legion post, or a government office. Sometimes the Boy Scouts or Girl Scouts will have collections.
It is permitted to wash a flag gently using mild soap and water. Some dry cleaners will clean your flag for free, especially in July. You also are allowed to repair a flag.
The traditional way to destroy a flag is to burn it. Usually the blue field is cut out, leaving two pieces of cloth–i.e. it is no longer a flag. If that is not done, it should be folded, ideally into a traditional triangle. Then it can be burned to ashes which are then buried.
MUSICAL TRIBUTE: Sousa’s Semper Fidelis (always loyal) by the US Marine Band